Herry is planning to purchase a Treasury bond with a coupon rate of 2.38% and face value of $100. The maturity date of the bond is 15 March 2033.(d) If Henry purchased this bond on 4 March 2020, what is his purchase price (rounded to four decimal places)? Assume a yield rate of 3.3% p.a. compounded half-yearly. Henry needs to pay 27.8% oncoupon payment and capital gain as tax payment. Assume that all tax payments are delayed by half year.a. 91.4039b. 66.4308c. 80.8684O d. 79.8170

Calculate the present value of the tax on the coupon payment:Tax on coupon payment = 27.8% * $1.19 =…

Answered: Herry is planning to purchase a…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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